The Internal Revenue Service today announced the release of Form 5304-SIMPLE (Savings Incentive Match Plan for Employees of Small Employers (SIMPLE) - Not Subject to the Designated Financial Institution Rules).

The Internal Revenue Service today announced that its plan to offer buyouts to employees affected by a reorganization the agency began 3 years ago has received final approval. "The reorganization permits the IRS to provide better service to its customers. We are pleased with this approval because it will let us help many of the employees whose jobs are affected by the reorganization," said IRS Commissioner Margaret Milner Richardson.

The Internal Revenue Service has mailed a tax tip to over 300,000 taxpayers, alerting them that the identification numbers they used on their last tax returns could delay their refunds next year. As a convenience, the mailing also contained the forms to be used to apply for appropriate identification numbers.

A technical correction to a 1993 law will mean refunds for several thousand middle-income taxpayers, according to Internal Revenue Service estimates. Affected is the interest exclusion for those who redeemed qualified U.S. Savings Bonds after 1992, paid higher education expenses in the year of redemption, and had incomes between the "former threshold" and "exclusion ends" amounts listed below.

The Internal Revenue Service today announced that interest rates for the calendar quarter beginning January 1, 1997, will remain at eight percent for overpayments, nine percent for underpayments, and eleven percent for large corporate underpayments. The overpayment rate for the portion of corporate overpayments exceeding $10,000 will remain at 6.5 percent.

Taxpayers need valid identification numbers for themselves, their spouses and every dependent born before Dec.1, 1996. According to the Internal Revenue Service, using correct taxpayer identification numbers is more important than ever before. Recent tax law changes make valid identification numbers a requirement for claiming personal exemptions, the child care credit or the earned income credit.

In an effort to encourage millions of American taxpayers to file their returns by telephone next year, the Internal Revenue Service will send them something very different -- a tax package with a worksheet instead of a tax form. The TeleFile package will be sent to over 22 million taxpayers inviting them to use this paperless tax filing system.

The Internal Revenue Service has resumed publication of excise tax statistics with data available for Fiscal Years 1994 and 1995. Excise taxes collected by IRS in Fiscal Year 1995 totaled $45 billion, up from $43 billion in 1994. The total includes taxes on gasoline of $19.9 billion, diesel fuel $6.7 billion, air transportation $4.9 billion and telephone and teletype services $3.8 billion. Another $11.8 billion in excise taxes were collected by the Bureau of Alcohol, Tobacco and Firearms.

The Internal Revenue Service today announced the release of Form 5305-SIMPLE. Section 1421 of the Small Business Job Protection Act of 1996 (P.L. 104-188), signed into law on August 20, 1996, created the Savings Incentive Match Plan for Employees of Small Employers (SIMPLE Plan) effective in 1997. SIMPLE Plans offer small employers a simplified option for providing retirement income for employees through salary reduction and matching contributions that are made to individual retirement accounts or annuities (IRAs).

The Internal Revenue Service and The George Washington University will sponsor the Ninth Annual Institute on Current Issues in International Taxation on Dec. 12 and 13, at the J.W. Marriott Hotel in Washington, D.C.

The Internal Revenue Service today released a simple, one-page document to help businesses understand their rights under the law when the IRS questions their classification of workers as independent contractors. The new document is the latest in a series of actions the IRS has recently taken to make it easier for businesses to work with the IRS on worker classification issues.

Last-minute tax return filers who use certain private delivery companies will soon have the same assurance as those who use the U.S. Postal Service, that a return mailed on time is also considered filed on time. Before the recently enacted Taxpayer Bill of Rights, only taxpayers who sent returns via the USPS had that assurance. The Taxpayer Bill of Rights permits the Internal Revenue Service to extend that rule to certain private delivery companies, also called designated delivery services.

Employers can get a tax credit of up to $2,100 if they hire new employees from one of seven targeted low-income groups. The credit -- generally, 35 percent of the first $6,000 in wages -- applies to employees who start work after September 30, 1996 and before October 1, 1997.

The average tax rate for individuals for 1993 was 14.1 percent, 2.9 percent more than 1992, according to the Summer 1996 issue of the Internal Revenue Service quarterly publication, the Statistics of Income Bulletin. This was the highest average tax rate (tax divided by adjusted gross income or AGI) since 1986, and was due entirely to taxpayers with AGI of $100,000 or more. The average rate for all other individuals declined. An analysis of income tax returns shows that the new higher tax rates enacted in 1993 for higher income individuals were largely responsible for the increased average tax rate.

The Internal Revenue Service is granting some relief to taxpayers who may be unable to meet their federal tax obligations in places that are declared disaster areas due to Hurricane Fran and its aftermath.

Sarah Whitbeck is New Director of Government Program Management Office

Commissioner of Internal Revenue Margaret Milner Richardson today announced the appointment of Sarah Whitbeck as the first director of the new IRS Government Program Management Office. Whitbeck will be responsible for the day-to-day technical management of IRS's computer modernization program, including the management of outside contractors who provide services and products for the modernization program.

The Internal Revenue Service today announced that interest rates for the calendar quarter beginning October 1, 1996, will remain at eight percent for overpayments, nine percent for underpayments, and eleven percent for large corporate underpayments. The overpayment rate for the portion of corporate overpayments exceeding $10,000 will remain at 6.5 percent.

Both employees and employers who participated in employer-provided educational assistance plans in 1995 or 1996 could be entitled to refunds because of recent tax law changes. The Internal Revenue Service has set up special procedures to make it easier to get these refunds and to expedite the processing of refund claims sent to the IRS.

One less form to complete, fewer boxes to check and expanded availability of a short form for reporting business profits are among the changes evident in the advance proofs of the 1996 tax forms released today by the Internal Revenue Service.

Commissioner of Internal Revenue Margaret Milner Richardson today announced the appointment of Floyd Williams as the National Director of Legislative Affairs. Williams is presently the Deputy Assistant Secretary for Legislative Affairs and Public Liaison (Tax and Budget) at the Department of Treasury.

As part of its on-going efforts to simplify the tax forms, tax information publications and other documents it sends to the public, the Internal Revenue Service has issued a new two-page version of Publication 1, "Your Rights as a Taxpayer." The revision is not only shorter and easier to understand, but it also features a new declaration of taxpayers' rights, highlighting the most important rights taxpayers have when doing business with the IRS.

The Internal Revenue Service today awarded contracts to five vendors to test the feasibility of using private firms to assist the IRS in collecting delinquent federal taxes from individuals and businesses.

For 1994, taxpayers filed 116.1 million individual income tax returns, up 1.5 million from 1993. Adjusted gross income (AGI) increased by 5.0 percent to $3.9 trillion, more than twice the growth rate for 1993, according to the Spring 1996 issue of the Internal Revenue quarterly publication, the Statistics of Income Bulletin.

The Internal Revenue Service today announced that interest rates for the calendar quarter beginning July 1, 1996, will increase to eight percent for overpayments, nine percent for underpayments, and eleven percent for large corporate underpayments. The overpayment rate for the portion of corporate overpayments exceeding $10,000 will increase to 6.5 percent.

More than 99 percent of wage income is correctly reported to the Internal Revenue Service, but less than 70 percent of net income earned by unincorporated businesses is, according to a study of 1992 tax behavior just released by the IRS.

Vice President Al Gore recognized the joint efforts of the Southwest District of the Internal Revenue Service and the Arizona Department of Revenue to improve service to the public at a "Breakfast of Champions" on Capitol Hill on May 6, 1996. IRS Commissioner Margaret Milner Richardson accepted the award -- one of six Public Service Excellence Awards for Intergovernmental Programs -- which pays tribute to groups of government employees whose programs exhibit the highest standards of dedication, excellence and accomplishment.

Today the IRS released a revenue procedure that will assist charities involved in low-income housing to obtain tax exemptions more expeditiously. The revenue procedure represents a cooperative effort of the IRS and the low-income housing community to furnish beneficial guidance.

Corporations filed over 3.9 million active federal income tax returns for 1993, reporting $12.3 trillion in total receipts, $498.2 billion in net income (less deficit), $436.8 in income subject to tax, and $120 billion in income tax after credits.

The Internal Revenue Service today announced special tax relief under recently enacted legislation for U.S. military and support personnel involved in the peace-keeping efforts in the former Republic of Yugoslavia (Bosnia and Herzegovina, Croatia, and Macedonia).

Waiting until the last minute tax to file your tax return? You can still get assistance from the Internal Revenue Service this weekend. Tax assistors will staff IRS's toll-free telephone lines (1-800-829-1040) from 10 a.m. 2 p.m. on Saturday, April 13. TeleTax recorded tapes on about 150 tax topics are available 24 hours a day at 1-800-829-4477.

Commissioner of Internal Revenue Margaret Milner Richardson announced the selection of Evelyn A. Petschek as Assistant Commissioner (Employee Plans and Exempt Organizations). Petschek, who was the Director of the Employee Plans Division, replaces James McGovern, who retired in February.

Commissioner of Internal Revenue Margaret Milner Richardson announced Ronald S. Rhodes as the new Assistant Commissioner (Collection). Rhodes, who was the National Director of Service Center Compliance, replaces Steve Taylor, who retired in February.

With the tax filing deadline eleven days away, the Internal Revenue Service today reminded taxpayers that it offers automatic extensions for those who can't complete their forms on time. You can get an extra four months -- until August 15 -- to do the paperwork by sending Form 4868 to the IRS by April 15.

People often think they have no chance for input when it comes to government regulations. But the Internal Revenue Service always provides an opportunity for input to its regulations. IRS often hears from businesses, organizations, CPAs, or attorneys, but not much from the average citizen. Most people just don't know how to do it. Now the IRS has made it easy for computer users with access to Internet to let their voices be heard.

TeleFile, the new Internal Revenue Service product that allows taxpayers to file by telephone, is a runaway hit. A month before the April 15 filing deadline, TeleFile volume had hit 95 percent of what was projected for the entire year and one-third of the states had already exceeded those projections.

With just four weeks to go to the April 15 filing deadline, the Internal Revenue Service urges taxpayers needing assistance to act soon to avoid the last-minute crunch. The IRS has already helped 16 million taxpayers through its walk-in offices, telephone assistors and recorded tax tapes this year -- 800,000 more than in the first two months of 1995. In addition, the IRS' new home page on the World Wide Web has received over 25 million hits.

The Internal Revenue Service today announced that interest rates for the calendar quarter beginning April 1, 1996, will decrease to seven percent for overpayments, eight percent for underpayments, and ten percent for large corporate underpayments. The overpayment rate for the portion of corporate overpayments exceeding $10,000 will decrease to 5.5 percent.

To educate restaurant workers about their tax obligations and tip income, the Internal Revenue Service is distributing a 16-minute videotape throughout the food and beverage industry. The videotape was developed in conjunction with the IRS's Tip Reporting Alternative Commitment (TRAC) program.

Where can you get good tax help today? How about a community or senior center, a club lodge, a church hall or a public library? These are among the most common of the thousands of sites staffed by two volunteer programs sponsored by the Internal Revenue Service.

The Internal Revenue Service is once again receiving and denying thousands of illegitimate tax claims for slavery reparations to African-Americans. In April 1993, Essence Magazine published an article leading African-Americans to believe they could file tax claims with the IRS for reparations payable to descendants of slaves.

Businesses concerned with the classification of their workers for tax purposes should soon find it easier to work with the Internal Revenue Service to resolve that issue, thanks to several initiatives the IRS is taking. The IRS has developed a new classification settlement program, which will be available for a two-year test period, and a new procedure for early referral of employment tax issues to the IRS Appeals function, which will operate for a one-year test period. Last week the IRS released a draft of new training materials for tax examiners on worker classification issues.

Filing by phone has been quite popular among taxpayers looking for alternatives to traditional paper returns. As of Feb. 22, the IRS had accepted over two million returns through its TeleFile system. TeleFile is available nationwide for most single taxpayers who would otherwise use Form 1040EZ.

The FY 1997 President's budget enables the IRS to continue funding its ongoing operations and providing additional resources for specific programs and investments. By applying technology and innovative approaches to management, the IRS will be able to continue making real progress improving services to taxpayers and doing its job more efficiently and effectively.

The Classification Settlement Program or "CSP" establishes new procedures under an optional classification settlement program that will allow businesses and tax examiners to resolve worker classification cases as early in the administrative process as possible, thereby reducing taxpayer burden.

The Internal Revenue Service is expanding opportunities for filing tax returns from home. CompuServe and five transmission companies are participating in the 1996 IRS On-Line Filing Program. Together, they allow users of nine tax preparation software packages to file tax returns electronically from their personal computers to the IRS.

The Internal Revenue Service today announced a series of new taxpayer rights initiatives as part of its ongoing efforts to reduce the burden on taxpayers when conducting business with the IRS and to make it easier for taxpayers to understand and exercise their rights.

Because the demand for tax assistance continues to increase, and the IRS's budget -- and its ability to hire more assistors -- has decreased, the IRS is constantly seeking alternative sources for providing information to the public. And while taxpayers are encouraged to use these alternative sources, assistors will still be available both by phone and in person to provide free tax help.

The Internal Revenue Service today proposed procedures that would eliminate requirements that taxpayers keep paper records and allow an electronic imaging system to be used instead. The IRS is soliciting public comment on the proposal, which was announced earlier this month as part of the expanded Taxpayer Bill of Rights.

In response to our customers' desires for simpler, high-tech options, the IRS offers a number of filing alternatives to traditional paper forms. TeleFile, the file-by-phone system for single 1040EZ filers, expanded nationwide this year and is completely paperless for the first time. Electronic filing and computer filing options have expanded as well.

Although blizzard conditions shut down much of the federal government in the Northeast last week, hundreds of thousands of people still received the tax help they needed from the Internal Revenue Service. IRS's new home page on the World Wide Web (http://www.irs.ustreas.gov) went on-line January 8th as scheduled, and was an immediate hit -- or more like 220,000 hits (that's the number of accesses) -- in the first 24 hours. One week after its debut, the hit counter was up to more than a million.

The Internal Revenue Service will send about 110 million income tax packages and postcards this year. Most taxpayers will get their forms by early January. IRS expects to receive over 118 million tax returns in 1996, with continued growth in such alternatives as electronic filing and the 1040PC and a decline in the "long" Form 1040.